Finance-Economy

Latest Finance-Economy News

📅December 28, 2025 at 1:00 PM
Global finance headlines: higher-for-longer rates, US tariff fallout, AI investment surge, commodity shocks, China slowdown, bank stress, ECB/BoJ decisions, markets volatile, fiscal risks, and M&A activity.
1

Central banks signal ‘higher for longer’ interest-rate stance into 2026

Major central banks have repeatedly indicated they will keep policy rates elevated amid sticky core inflation and resilient labor markets, dampening hopes for rapid cuts and increasing borrowing costs for governments and firmsSource 4Source 6.

2

US reciprocal tariffs continue to reshape global trade and raise inflation concerns

The US’s 2025 reciprocal tariffs (10–49%) sparked supply-chain adjustments and retaliatory measures, prompting higher import prices, renewed trade negotiations, and uncertainty for exporters and manufacturers worldwideSource 2Source 3.

3

AI investment boom fuels markets and geopolitical competition

Surging private and public investment into generative AI and critical chips has become a major economic driver in 2025, accelerating productivity bets while raising strategic competition between the US, China and allies for technology leadership and critical mineralsSource 3Source 2.

4

Global growth outlook mixed but resilient at roughly 3%

Multilateral agencies and analysts reported a resilient global economy in 2025 with growth near 3% as countries adapted through digitalisation and policy shifts, though downside risks from trade tensions and energy shocks persistSource 7Source 3.

5

Energy and Middle East geopolitics keep oil and gas markets volatile

Ongoing Middle East tensions and supply-side constraints contributed to periodic spikes in oil prices during 2025, complicating inflation and fiscal planning for energy-importing economiesSource 2Source 3.

6

Gold hits record highs on trade tensions and safe-haven demand

Uncertainty from tariffs and geopolitical risks pushed investors into gold, which saw dramatic price moves in 2025 as markets priced elevated risk premia and currency swingsSource 3.

7

Banking-sector stress and regulatory scrutiny rise after episodic failures

A string of bank troubles and tighter liquidity conditions in 2025 prompted regulators to increase oversight, with markets pricing higher funding costs and greater caution in corporate lendingSource 4Source 6.

8

China’s post-COVID recovery shows uneven momentum, weighing on global demand

China’s 2025 growth remained fragile and uneven across regions and sectors, slowing commodity demand and complicating export-led recoveries in several emerging marketsSource 2Source 7.

9

Fiscal pressures mount as governments juggle tariffs, stimulus and aging populations

Higher borrowing costs and policy uncertainty forced many governments to reassess fiscal trajectories in 2025, with some countries delaying tax or spending plans amid market scrutinySource 2Source 5.

10

Mergers & acquisitions and corporate restructuring accelerate into year-end

Corporates responded to higher rates and strategic shifts—especially in tech and energy—by accelerating M&A, divestitures, and balance-sheet adjustments to secure scale and critical supply-chain assetsSource 3Source 4.